As learned from EnergyTrend, the earnings season is fast approaching. Recently, TCL Zhonghuan and ATW have successively released their 2025 annual earnings forecasts.
Affected by cyclical fluctuations and the supply-demand dynamics of the industry, the financial performance of numerous PV enterprises is under varying degrees of pressure. Among them, Zhonghuan’s narrowed losses demonstrate certain operational resilience, while ATW continues to grapple with performance headwinds.
On January 13, TCL Zhonghuan released its 2025 annual earnings forecast, projecting a negative net profit.
Specifically, the company expects its annual net profit attributable to shareholders of the listed company to be in a loss range of RMB 8.2 billion to RMB 9.6 billion, representing a reduction compared with the net loss of RMB 9.818 billion in the same period of the previous year.
The announcement pointed out that although the newly installed PV capacity maintained growth during the reporting period, the overall supply-demand imbalance remained unchanged and the industry was still at the bottom of the cycle. Consequently, TCL Zhonghuan faced operational pressure, yet its operating cash flow remained positive.
In response to the industry predicament, TCL Zhonghuan has helped restore the industry’s supply-demand relationship through production-on-demand. Meanwhile, it adheres to a moderate integration and globalization strategy, consolidates the foundation of its PV materials business, enhances the competitiveness of its cell and module products, and advances overseas projects in a steady and orderly manner.
In addition, the company focuses on internal management optimization, drives product structure upgrading and technological innovation, deepens organizational reform, strictly controls costs and expenses, adheres to operational bottom lines, and steadily improves its relative competitiveness. TCL Zhonghuan stated that it will continue to consolidate the advantages of its PV materials business, strengthen the competitiveness of its new energy cell and module products, and optimize overseas business layout and global marketing capabilities.
Notably, on January 8, TCL Zhonghuan issued an announcement estimating that the total amount of daily connected transactions with related parties in 2026 will be approximately RMB 9.365 billion, including RMB 5.755 billion in connected purchases and RMB 3.61 billion in connected sales. The transaction mainly involves the purchase of RMB 4.52 billion worth of raw materials from Inner Mongolia Xinhuan Silicon Energy Technology Co., Ltd., and the sale of RMB 3.3 billion worth of module products to Huizhou TCL PV Technology Co., Ltd.
On January 7, ATW released its 2025 annual earnings forecast.
Preliminary calculations show that the company expects to achieve an annual revenue of approximately RMB 6.393 billion to RMB 6.741 billion, a year-on-year decrease of 26.71%-30.5% compared with the revenue of RMB 9.198 billion in the same period of the previous year; the net profit attributable to the parent company is expected to be about RMB 431 million to RMB 571 million, a year-on-year drop of 55.12%-66.17% against the RMB 1.273 billion in the prior-year period.
Regarding the performance decline, ATW indicated that due to the cyclical impact of the PV industry, the PV equipment business has continued to decline without obvious improvement. Coupled with the extended equipment acceptance period, the revenue scale has shrunk significantly, which in turn has dragged down gross profit. Meanwhile, the provision for impairment has further exacerbated the decline in net profit.
According to the previous third-quarter report, ATW achieved a revenue of RMB 4.672 billion and a net profit attributable to the parent company of RMB 390 million in the first three quarters of 2025, down 32.67% and 67.68% year-on-year respectively, showing that the pressure-bearing trend has persisted throughout the year.
Nevertheless, the company continues to ramp up R&D investment to counter cyclical challenges. In the first three quarters, its R&D expenditure reached RMB 354 million, a year-on-year increase of 30%, among which the investment in the third quarter hit RMB 153 million, with a year-on-year growth rate of over 90%.
Source：EnergyTrend